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(c) Twelve years ago, you deposited RM3,400 into an account. Seven years ago, you added an additional RM1,000 to this ac
Posted: Fri Jul 01, 2022 7:36 am
by answerhappygod
- C Twelve Years Ago You Deposited Rm3 400 Into An Account Seven Years Ago You Added An Additional Rm1 000 To This Ac 1 (125.53 KiB) Viewed 46 times
(c) Twelve years ago, you deposited RM3,400 into an account. Seven years ago, you added an additional RM1,000 to this account. You earned 8 percent, compounded annually, for the first 5 years and 5.5 percent, compounded annually, for the last 7 years. How much money do you have in your account today? (4 marks) (d) Your local bank offers 4-year certificates of deposit (CD) at a 12 percent annual nominal interest rate compounded quarterly. Determine how much additional interest you will earn over 4 years on a RM10,000 CD that is compounded quarterly compared with one that is compounded annually. (4 marks) (e) In exchange for a RM20,000 payment today, you are allowed to choose one of the alternatives below. Your opportunity cost is 11%. Alternative Single amount A RM28,500 at end of 3 years RM54,000 at end of 9 years B C RM160,000 at end of 20 years Find the value today of each alternative. Which alternative will you take? (4 marks)